Ghana port dredging to ease cement supply constraints

Ghana's Tema port will complete dredging work at three berths used for clinker and cement imports within two weeks, enabling larger vessels to dock and potentially alleviating supply constraints that have driven up costs across the country's cement sector, Transport Minister Joseph Bukari Nikpe told local media Feb. 24.

The accelerated timeline for the berths addresses congestion at offloading points that has contributed to clinker shortages and mounting demurrage charges for manufacturers. The dredging project aims to deepen the port to accommodate vessels carrying up to 25,000 mt of cargo, compared with the current maximum of 8,000-9,000 mt, allowing importers to consolidate shipments and reduce the number of vessels competing for berth space.

"One vessel could have done the work of three vessels today," Nikpe said after a meeting with cement manufacturers, explaining how shallow depths had forced importers to use multiple smaller ships for cargoes that larger vessels could handle in a single voyage.

The three berths will be dredged to varying depths of 10 meters, 12 meters and 14 meters below the waterline, with the broader port dredging project scheduled for completion in June.

Cost pressures

The dredging timeline comes as cement manufacturers warned of potential price increases stemming from delays of up to three weeks for clinker shipments at Tema. Industry executives said mounting demurrage charges from vessels waiting at sea for berth space threatened to push up production costs that could ultimately be passed on to consumers.

"The cement industry is leaking financially due to escalating demurrage charges," George Dawson-Ahmoah, chief executive of the Chamber of Cement Manufacturers Ghana, told at a Feb. 23 meeting with government officials, according to local media reports.

Nikpe said the completion of dredging at the three berths would enable a "free flow of vessels" and reduce both business costs and turnaround times at the port. "It is not an assurance on paper," he said. "It is already work ongoing. We started the dredging last year, and in two weeks' time, all three berths will have their complete dredging, and bigger vessels will now come."

Platts, part of S&P Global Energy, last assessed the Platts Clinker Turkey price at $44.75/mt FOB Feb. 19.